Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if SegmentA were eliminated.ZACHARY COMPANYIncome Statements for Year 2SegmentSalesCost of goods soldSales commissionsContribution marginGeneral fixed operating expenses (allocation of president's salary)Advertising expense (specific to individual divisions)Net income (loss)Requireda. Prepare a schedule of relevant sales and costs for Segment AA$ 168,000(126,000)(20,000)22,000(34,000)(6,000)B$ 235,000(79,000)(32,000)124,000(51,000)(19,000)$ (18,000)$ 54,000$ 253,000(82,000)(28,000)143,000(34,000)$ 109,000b. Prepare comparative income statements for the company as a whole under two alternatives (1) the retention of Segment A and (2)the elimination of Segment AComplete this question by entering your answers in the tabs below..Required A Required BPrepare a schedule of relevant sales and costs for Segment A.Relevant Revenue and Cost Items for Segment AEffect on income$

Name: Zachary Company operates three segments Income statements for the seg
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Description: Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if SegmentA were eliminated.ZACHARY COMPANYIncome Statements for Year 2SegmentSalesCost of goods soldSales commissionsContribution

Comparative income statement:When a statement provides information on the financial status of the…

Business

Accounting

Segment Sales Cost of goods sold Income Statements for Year 2 Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) $ (18,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) 0 $ 109,000

Segment Sales Cost of goods sold Income Statements for Year 2 Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) $ (18,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) 0 $ 109,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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